The company’s background (the industry it is operating in, its nature of business etc..)
• The company’s management (BOD, CFO, etc…)
10%
10%
2 Body:
• Formulas and calculations (Time-series analysis data)
• Formulas and calculations (cross-sectional analysis data)
• Interpretation and critical review using time-series analysis
• Interpretation and critical review using cross-sectional analysis.
50%
3 Conclusions and recommendations (Overview of the company’s performance and position, the company’s standing in the industry, future outlook, opinions, etc…) 20%
4 Presentation 5%
5 References 5%
Total 100% /100
Assignment steps to be taken
Steps:
1. Choose a company which is listed on either one of thestockexchanges (NYSE or KLCI)
2. Find out what industry the company is in.
3. Identify its major competitor (only one competitor)
4. INTRODUCTION: Write about the company’s nature of business, its industry..etc
5. INTRODUCTION: Write about the company’s management people
6. BODY: Look at the company’s annual reports, choose which year (total 3 years) for your ratios calculation
7. BODY: Look into the competitor’s annual report and decide which year you want to use for ratio calculation for your competitor (only ONE year, and normally the FINAL year)
8. BODY: Calculate the ratios for both companies based on the number of years you have choosen. There are 5 types of ratios (liquidity, activitiy, profitability, market performance and leverage ratios). For each ratio, perform the calculation for at least 3 www.ukthesis.org sub-ratios underneath each of the 5 main categories. (For Guidance on calculations and interpretation, please refer textbook; Gitman, Chapter 3)
**This is only ONE example shown, Please compute ratios for the other 4 more Categoris. (I will introduce the other ratios next week during the lecture, TQ…)
Eg: (A) Profitability
• ROA = (Net profit/Total Assets)*100%
• ROE = (Net Profit/ Total Equity)*100%
• Net profit Margin = (Net Profit/ Sales)*100%
9. BODY:After calculating the ratios for your company, you can continue which ratios calculation for your competitor (ONLY ONE YEAR)
10. BODY: Based on your ratio calculations, interpret the performance of your company from year to year, and compare it with the Competitor’s performance.
**You may refer to the examples from your textbook, end of Chapter 3.
11. CONCLUSIONS AND RECOMMENDATION: (**All within your own creativity and discretion.) You CAN judge on the company’s future direction, its major strengths and weaknesses, etc.. Be creative.. ;-P
